Student grants frozen as tuition fees rise

Wednesday 1 July 2009 14.30 EDT
First published on Wednesday 1 July 2009 14.30 EDT

The government is freezing all student grants and loans and cutting financial support for trainee teachers as a result of the recession, it announced today.

Union leaders said the moves were a "kick in the teeth" after it emerged that tuition fees will also rise by 2.04%, taking the annual charge to £3,290 – nearly £300 more than when fees were introduced in 2006. Grants are to be frozen at £2,906 for the poorest students and loans for living costs are also frozen, while loans to cover tuition fees will rise to cover the increasing fees. Teacher training grants of up to £6,000, which had been universally offered, are to be restricted to people from lower income homes.

David Lammy, the universities minister, said in a written ministerial statement to parliament: "In these difficult economic times, we are continuing to take difficult decisions in the interests of students, universities and taxpayers alike. We have therefore decided to maintain the current package of maintenance support for full-time students, reflecting the current low inflationary environment."

It is understood ministers were forced into the decision to free up cash to avoid a cut in the grant as student numbers rise.

A promise to give university grants to all students who previously received £30-a-week study grants at school has been reversed in favour of means testing.

Teacher training grants for postgraduates will be cut substantially. Those with household incomes above £34,000 will pay for the majority of their living costs through loans of up to £5,000 instead of grants, adding to the debt mountain for some new graduates. Previously all trainees qualified for non-repayable grants.

The changes apply to England alone and will come into force in September 2010.

Wes Streeting, president of the National Union of Students, said: "Students are already racking up thousands of pounds of debt. It appears that the inflation rate is being applied where it suits universities, but not where it will improve student support. These real-terms cuts in student support will be felt in students' pockets."

The statement to parliament came hours after the government published figures revealing that the proportion of students from the poorest backgrounds is increasing. Some 21% of 18- to 21-year-olds taking degrees last year were from the poorest four socio-economic groups, compared with 18.1% the year before.

David Willetts, the shadow universities minister, said: "Gordon Brown tried to increase support for students in his first week as prime minister and he's been cutting it back ever since. Students from poorest families will be the victims.

"The government needs to get on with the fees review and look at ways to offer a better deal for poorer students."